Termination for Convenience and Bad Faith

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Vila & Son Landscaping Corporation v. Posen Construction, Inc., 37 Fla. L. Weekly D2228c, Case No. 2D10-5582, filed September 19, 2012. Construction contract was between Posen Construction and Florida Department of Transportation, which approved contractor’s subcontract for landscaping containing a “termination for convenience” provision. Contractor terminated subcontract based on obtaining a lower price, and subcontractor sued for breach based on such basis constituting “bad faith. Jury awarded damages to subcontractor for lost profits, which contractor moved to set aside notwithstanding the verdict as to both liability and damages. The trial court ordered a new trial, which neither party requested and both parties opposed. The trial court’s order for a new trial was reversed, and the case remanded for entry of a judgment in favor of contractor, based on a finding that the contract was rightfully terminated since contractor did not act in bad faith by exercising this contract right in order to obtain a lower price for the work. (from RPPTL Subcommittee).
Trenton H. Cotney
Florida Bar Certified Construction Lawyer
Trent Cotney, P.A.
1211 N Franklin St
Tampa, FL 33602
(813) 579-3278

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